Top Management Turnover M Related M&A’s: An Additional Test of the Theory of Relative Standing

Abstract

To date, the most promising attempt to explain departure rates of executives of acquired firms examined the conditions that create perceptions of relative standing, but did not gauge the perceptions themselves. This study extends this line of research by surveying the post-merger perceptions of the top managers of firms acquired in friendly, related deals. We used a two-stage data collection design with the attempt to explain turnover in the first three years following the acquisition, and also predict it in the fourth year.